NSW Land Tax - Two titles, one rates notice

Greetings,

I am I'm the process of subdividing a property for a family member.

The final subdivision has been accepted by council and the land titles office have split the title into two.

It was previously a shop and residence. It will be two residences once complete.

The smaller residence is finished, interim OC issued and it is tenanted.

The larger residence is 98% complete with the only remaining council inspection being downpipes and one of the owners is living there. The gas and electricity is connected in the owners name. This owner also resided in the smaller residence until tenants moved in earlier this year.

Council are still issuing one rates notice for the entire property and still charging rates on the basis that it is one property.

If we cannot get council rate the two titles separately how will land tax be calculated?

The property value is over the threshold and land tax has been paid every other year.

Edit: I should also mention that council is still issuing commerical rates on the property as they consider it a shop until development is complete.

 

Prob won't qualify for the PPOR unless it qualifies as residential land and qualifies as a single residence.

Get some legal advice or read schedule 1A land tax manangement act - or wait and see what happens.

 

Thanks Terry,

The zoning is mixed use, either side are residences and then 3 properties up one side it all becomes commerical.

I'll have a read of 1A LTM Act.

 

The owner advised that on further inspection of the single rates notice they have allowed for the subdivision and apportioned different values to each block of land so hopefully that resolves the issue without any doubt.